Saudi Paper renews, adjusts SAR 195M credit facility deal with GIB

Saudi Paper Manufacturing Co. headquarters

Saudi Paper Manufacturing Co. (SPM) renewed and amended today, Oct. 1, a credit facility agreement with Gulf International Bank (GIB), according to a statement to Tadawul.

The deal includes a new medium-term financing worth SAR 105 million in addition to existing working capital facilities of SAR 90 million, bringing the total funding to SAR 195 million.

The 12-month working capital facilities are renewable, while the medium-term financing extends for 54 months, including a six-month grace period.

The agreement is secured by a promissory note at the full amount of the financing.

The funds will be used to support liquidity for working capital needs in line with the company’s strategy and expansion plans, following the commercial operation of its fifth production line.

This besides supporting the restructuring of medium-term debt to improve cash flows, the Saudi-listed paper manufacturer noted.

There are no related parties to the deal, it added.